Glossary · People and paperwork
In short
This SBA rule states that all owners of 20% or more of the borrowing business must be U.S. citizens or Qualified Aliens residing in the U.S. It's a fundamental eligibility criterion for the loan.
If you are buying a business with an SBA 7(a) loan, you and any other owner holding 20% or more equity must satisfy this requirement. You'll need to provide documentation like a U.S. passport, birth certificate, or Form I-551 (Green Card) to prove your status. No exceptions for non-residents.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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